Home >

Domestic Sportswear Brands Are Facing A Headache Of Overstock.

2011/12/24 16:19:00 30

Sports Apparel Brand Inventory Backlog

Because of the obvious seasonal and fast updating of clothing products, how to deal with the increasing number of products?

Stock

It has become a headache for the clothing industry.


In the first half of this year, Lining's inventory reached 992 million yuan, an increase of 186 million yuan compared with the beginning of the year.

It also announced that it would spend about 300 million yuan on the sale of "unsold products" to distributors. It is expected that the group will need to reissue in the next two years.

Outsourcing

About 1 billion 448 million yuan in stock.


XTEP's stock explosion is even more serious.

At the end of 6 2011, inventory was 887 million yuan, up 424 million yuan or 91.77% compared with the same period last year, of which the product increased from 4 yuan to 474 million yuan at the beginning of the period, increasing 4 times.


In a semi annual report, XTEP pointed out that the first half of the year's footwear and apparel products were more than 2000 and 2700 design styles respectively.

In the continuous introduction of new models, how can XTEP complete nearly 500 million yuan inventory digestion?


Account of sporting goods enterprises

Stock

Just a part of its actual inventory, a large part of it has been sold wholesale to dealers but not sold.

In the case of XTEP's continuous development of new products, the stock that has been granted to dealers is likely to be faced with the pressure of repurchase and depreciation as Lining did, resulting in a sharp decline in net profit.


The dilemma of sporting goods stocks such as Lining and XTEP is not without historical reference.

In fact, Nike, ADI and other sporting goods "originator" also encountered high inventory trouble.


In 2008, as a sponsor of the Beijing Olympic Games, Adidas was overoptimistic about the market and increased its production scale. Unfortunately, it suffered from the global economic crisis after the Olympic Games.


It took Adidas more than two years.

Sale

Inventory backlog is cleared.

It can clean up huge inventory and play an important role in brand appeal.


Chinese sporting goods companies used to expand their channels too fast. In recent years, franchisees have largely digested their stock, rather than expanding orders, and intensified competition with foreign sporting goods providers, causing the biggest adverse prospect.


 
  • Related reading

Why Fashion Enterprises In China Are Keen And Multi Brand

Analysis and research
|
2011/12/23 20:47:00
14

Clothing Enterprises Are Better Off In Quantity Than Quality.

Analysis and research
|
2011/12/23 12:00:00
23

"The First Year Of Debt", The Trend Of A New Year'S Journey Or A Repeat Of The Trend.

Analysis and research
|
2011/12/22 11:50:00
17

Why Is A Company IPO At All?

Analysis and research
|
2011/12/21 19:29:00
17

Is Wenzhou Clothing Really Lagging Behind Ningbo And Fujian?

Analysis and research
|
2011/12/21 15:39:00
15
Read the next article

EU Releases New Regulations On Fiber Composition And Textile Label

The EU official communique issued a new legislation on textile labeling legislation, that is, regulation 1007/2011: textile fiber names and related labels and textile fiber label, which will become a formal rule 20 days after the date of promulgation.